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Halifax U.K. HPI rises more-than-expected in October

Published 11/07/2011, 03:16 AM
GBP/USD
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Investing.com – House prices in the U.K. rose significantly more-than-expected in October, industry data showed on Monday.

In a report, the Halifax Bank of Scotland said its House Price Index rose by 1.2% in October, blowing past expectations for a 0.1% increase.

The previous month’s figure was revised to a drop of 0.3% from a previously reported decline of 0.5%.

The report showed that U.K. house prices fell at an annualized rate of 1.8% in October, while prices in the three months to October were 0.3% lower than in the previous three months.

Commenting on the report, Halifax housing economist Martin Ellis said, "The housing market has proved highly resilient in recent months despite the weak economic recovery and the deterioration in the outlook for both the UK and global economies.”

"The prospect of exceptionally low official interest rates over the foreseeable future is likely to continue to support the market in the face of a very difficult economic climate," he added.

Following the release of that data, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.23% to trade at 1.5996.

Meanwhile, European stock markets were broadly lower after the open. The FTSE 100 slumped 1%, the EURO STOXX 50 dropped 1.95%, France’s CAC 40 sank 1.8%, while Germany's DAX fell 1.2%.


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